Amid the downturn in the global financial technology market, the rumored Ripple Initial Public Offering (IPO), a highly anticipated event, could be affected by a potential delay.
Ripple IPO Might Be Delayed In The Thick Of Fintech Downturn
Director of FinTech Investment Banking at Rosenblatt Securities Dushyant Shahrawat has recently suggested a potential delay in Ripple’s IPO. This is due to the current bearish state of both the public and private Fintech market.
In an interview with global market Reporter, Jill Malandrino on NASDAQ, shared by an XRP community member Crypto Eri, the director was open-minded in shedding light on the performance of the fintech market. He underscored certain significant fintech companies’ declining performance when asked about the condition of the fintech industry.
He highlighted that the fintech index of the top 55 via fintech companies is down by 60%. He also added that the index is currently down to its all-time low from the last two to three years.
So the fact that the best-known fintech names in the public market are still down significantly, and it is on its all-time low from the last three years, is not a good sign for the market.
According to Shahrawat, investment options are altered by the declining performance of companies of all sizes, from late-stage unicorns to early-stage startups. As a result of this, there is a growing sense of caution in the fintech industry, particularly with regard to initial public offerings (IPOs).
Therefore, cryptocurrencies planning an IPO could be delayed as a result of these fintech companies’ poor performance. Additionally, Shahrawat brought up well-known names like Ripple and Circle, since both companies have announced plans to do an IPO by 2024.
“You can walk the hallways here, you’ve got Circle, Ripple, all the private fintech companies, unicorns, that were waiting in the wings to go public. That time frame (to IPO) got pushed back a little bit, quite a bit,” the Director said.
This development highlights the interconnectedness of these businesses by reflecting broader developments affecting fintech companies and the cryptocurrency market. In addition, it also influences worldwide economic factors on investment options and corporate policy.
Crypto Analyst On The IPO
According to Wall Street Specialist Linda P. Jones, Ripple’s IPO could take place sometime in 2024. She further added that the timeline would be best for the crypto firm to launch its IPO. However, she has asserted that if the IPO does not take place within the timeline, it will be shifted to 2025.
I think there’s an opportunity if Ripple wants to go public next year, that mid-May would be an ideal time, right around May 15. If it doesn’t happen, then I think it probably won’t happen until 2025.
In light of the current market condition, Ripple’s stakeholders and the wider cryptocurrency community need to reevaluate their expectations regarding the timing of the IPO. However, as the market volatility continues, more updates on Ripple’s plans are expected when the market develops.
Featured image by iStock, chart by Tradingview.com